CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

Which momentum indicator is unbounded?

A. Relative strength index
B. Stochastic oscillator
C. MACD
Correct Answer: C

Because MACD is unbounded (it does not have any upper or lower limits to bind its movement), it is not particularly useful for identifying overbought and oversold levels.

User Contributed Comments 2

User Comment
gill15 ROC and MACD fluctuate above and below zero
shann680 MACD divergence is v helpful in identifying oversold/bought levels!
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